• Government contractors with 50 or more employees and a contract exceeding a certain dollar amount must comply with affirmative action regulations.
• There are three levels of participation required, depending on the dollar amount of the contract.

When a government contractor has 50 or more employees and a contract exceeding a certain dollar amount, the contractor must follow certain steps under the affirmative action regulations. The regulations establish different provisions for non-construction (e.g., service and supply) contractors and for construction contractors.

Generally, there are three levels of participation required, depending on the size of the contract, as follows:

• If an employer has a contract of less than $10,000, none of the affirmative action plan regulations apply UNLESS the employer has multiple contracts with a total value in excess of $10,000.
• If an employer has a contract in excess of $10,000 (or multiple contracts which exceed this amount), but less than $50,000, then the employer must follow the equal opportunity (EO) requirements. This means that the employer must include EO clauses in contracts, maintain certain employment records, and follow the non-discrimination provisions.
• If an employer has a contract of $50,000 or more, the employer must follow the EO requirements and prepare a written affirmative action plan. The plan must cover females and minorities and individuals with disabilities. Employers with a federal contract of $100,000 or more must also include protected veterans in a written affirmative action plan.

Affirmative action requirements also apply to construction contractors and subcontractors that hold any federal or federally assisted construction contract in excess of $10,000. However, the goals are established by the government based on the region in which the work is performed.

Affirmative action regulations for non-construction (service and supply) contractors are found at 41 CFR 60-2. Requirements for construction contractors are found at 41 CFR 60-4.